If you go to a storage auction in your area, will the bidding resemble the storage battles you see on TV?

Generally speaking, it won’t, Arizona auctioneer Casey Jones said. Like most things, the “reality” on the screen doesn’t match what takes place at real-life storage auctions.
Still, when understood correctly, storage auctions can be a
worthwhile—and even entertaining—way to spend your time. “At our
auctions, we have some banter back and forth,” Jones said.
Here, experts share eight common myths about storage auctions, as well as the truth behind them.

1. Every Unit Contains Valuable Stuff.

Incredible finds are definitely a possibility when purchasing storage
units, but “it just doesn’t happen quite as often as seen on TV,” said
Travis Lane, founder of OnlineStorageAuctions.com.
To make the most of your experience, know where you can sell the
items, Jones suggested. If you have an outlet in mind, you’ll be able to
think through the value of goods, along with the profit to be made.

2. It’s Impossible to Tell What’s Inside a Unit.

While stepping foot into a storage unit isn’t allowed before an auction begins, you’ll be able to peer into it from the outside.

Bring a flashlight, Jones said, and “don’t forget to use your nose.”
You might be able to spot collectible items that might fetch a nice
price. You’ll also know, by smell, whether the previous owner smoked or
whether some items should have been thrown in the trash.

3. Storage Operators Remove Valuables Before the Auction.

“Like most conspiracy theories, this one is based upon the actions of a few bad apples,” Lane said.
In reality, auctioning off someone else’s belongings is a last resort, said James Grant, president and CEO of auction website StorageTreasures.com.
By law, if a storage tenant stops paying for a unit, the facility must
auction off the items inside to help cover the amount due.

4. A Credit Card Is All You Need to Buy a Unit.

“Always bring cash,” Jones said.
In addition to the amount you bid, you’ll need to pay sales tax, unless you have a sales tax ID number.
You’ll also usually be required to pay a cleaning deposit. This
amount, typically between $50 and $100, will be refunded as soon as you
clear out the unit.

5. You Must Attend the Auction.

Sites such as StorageTreasures.com and OnlineStorageAuctions.com
allow you to bid on storage units from home. If you bid online, “you’re
not dependent on the weather,” Grant said.

Furthermore, online auctions give you the chance to do a little
research. For instance, if you spot a bike or a refrigerator, you can
look online to see whether the item is selling for a certain price on
eBay or another e-commerce site.

6. You Can Keep Any Memorabilia You Find.

If you make the highest bid, you’re generally entitled to all of the contents inside a storage unit.
However, most facilities ask that you return personal items, such as
photo albums, to the facility manager. “It’s just common courtesy,”
Jones said.

7. Storage Operators Make a Big Profit From Auctions.

By law, storage facilities can keep only the overdue amount of rent,
as well as enough to cover the costs of the auction, such as
lock-cutting fees. The remainder goes to the tenant.
Say a place has a delinquent tenant who owes $500, and a unit of the
unit generates $1,000. The facility can keep just $500, plus enough
money to cover auction fees. The rest is sent to the customer.
For storage facility owners, “it’s their last legal remedy to get back the storage unit to rent to someone else,” Grant said.

8. You Can Pick Up Everything at Your Convenience.

After buying a unit, you often have until the close of business the next day to clear out a unit, Jones said.
Some facilities might let you rent the unit for a month and remove
the items during that time. The sooner you clean out a unit, the more
time you’ll have to evaluate—and then sell—what you find.

How Do Storage Unit Auctions Work?

Self-storage
units are a great way to store extra items and property for which you
don't have an immediate need. For a monthly fee, storage unit companies
can keep your things safe and protected, while freeing up space in your
house. However, when people are delinquent on their monthly storage
rent, or leave belongings behind, those items can be sold to the public
through an auction.

What is a Storage Unit Auction?

During
a storage unit auction, the belongings of a storage unit are auctioned
off to the highest bidder to recoup the loss of rental fees. Generally
this process is conducted via a live auction where bidders place their
bids aloud as the property within each unit is auctioned off. However,
occasionally a storage company will accept sealed bids, whereas bids are
placed through a sealed envelope and the highest bidder wins the items.

How Storage Unit Auctions Work

Before
the auction takes place, attendees are first made aware of the rules of
the auction set by the company. Then, bidders are allowed to peruse the
contents of the units being auctioned off, usually by looking through
the entrance of the unit and taking note of what's inside. After each
bidder has examined the unit, the live auction commences and the
contents of the unit are sold to the highest bidder. Unlike most
auctions, where a bid is placed for a single item, storage unit auction
bidders can only bid on the entire contents of the unit.

After the Bidding

After
the bidding is completed, bid winners have a small amount of time to
pay or risk forfeiting the bid. Generally, payment is required directly
after the auction or, at the most, the next day. Cash is usually the
preferred method of payment; however this varies from company to
company, so attendees need to be aware of payment type accepted before
attending the auction. Depending on individual state laws, an applicable
sales tax may be charged as well. After the payment has been made, the
winning bidders are given a set period to remove the contents of the
unit.

Legal Issues

To
protect themselves and to prevent wrongful sales of property, storage
unit companies generally make several attempts to contact delinquent
tenants either through phone, email or though notices of non-payment
mailed directly to them. However, a lien can legally be placed on a unit
as little as 30 days after a missed payment. Once auctioned off, the
contents of a unit legally belong to the winner of the bid and the
previous unit renter has no legal right to the items. For the bidders,
all items received are sold "as is," therefore it is buyer beware when
it comes to the contents of a unit so bidders should be aware of the the
contents of the unit and its value before deciding to place a bid.

Finding Storage Unit Auctions

Many
current and upcoming storage unit auction listings can be found through
legal notice postings in state and local newspapers. Another way to
find a unit auction is by contacting the storage company directly,
either through the company website, or by calling them to inquire of
upcoming auctions. Due to the recent popularity of storage auctions,
there are also several websites devoted to unit auctions, including
where to find them, and tips on how to get the most from your bids.